VARIOUS CSR SCHEMES OF LIC

LIC offers life insurance under Group policies to various groups such as employer,
employees, professionals and weaker sections of society. The main features of Group Insurance
Schemes are low premium and simple insurability conditions. Some of the group insurance schemes
are Group term insurance schemes, Group gratuity scheme, Integrated Rural schemes. LIC also offers
insurance coverage to people below poverty line under social security group schemes. A brief detail
of these schemes are mentioned as below:

1. JANASHREE BIMA YOJANA - The objective of the scheme is to provide life insurance
protection to the rural and urban poor persons below poverty line and marginally above the poverty
line. The Janashree Bima Yojana (JBY) was launched in August 2000. The Scheme has replaced
Social Security Group Insurance Scheme (SSGIS) and Rural Group Life Insurance Scheme(RGLIS).
45 occupational groups have been covered under this scheme. It is for people who are below poverty
line or marginally above poverty line. The Scheme provides for an insurance cover of Rs.30,000/- on
natural death. On death/ total permanent disability due to accident, the benefit is Rs.75,000/-. On
partial permanent disability due to accident, the benefit is Rs.37,500/-. The premium for the scheme
is Rs. 200/- per member, 50 per cent premium under the scheme is met out of Social Security Fund.
The balance premium is borne by the member and/ or Nodal Agency. As on 31st March 2012, about
220.56 lakh people have been covered.

2. AAM ADMI BIMA YOJANA - Aam Admi Bima Yojana, a new Social Security Scheme
for rural landless household was launched on 2nd October, 2007 at the hands of the then Honble
Finance Minister at Shimla. The head of the family or one earning member in the family of rural
landless household is covered under the scheme. The premium of Rs. 200/- per person per annum is
shared equally by the Central Government and the State Government. Head of the family or one
earning member of the family aged between 18 and 59 years is covered for an amount of Rs.30,000/-
under the scheme. In case of death or total disability (including loss of 2 eyes/2limbs) due to accident,
a sum of Rs. 75,000/- and in case of partial permanent disability (loss1 eye/1 limb) due to accident, a
sum of Rs. 37,500/- is payable to the nominee/beneficiary. 2,02,58,390 heads of the families of rural
landless households were covered under the scheme as on 31.03.2012. A free add-on benefit for the
children of the members of Aam Admi Bima Yojana is provided under the scheme. A scholarship at
the rate of Rs. 100/- per month is given to maximum two children studying between IX to XII
Standard payable half yearly on 1st July and 1st January each year. During the financial year 2011-
2012 scholarship were disbursed to 4,44,750 children amounting to Rs. 46.39 crore.

3. SHIKSHA SAHAYOG YOJNA - This is a scholarship scheme launched on 31.12.2001

for the benefit of children of members of Janashree Bima Yojana. The scheme was launched on 31st
December 2001, with the object to lessen the burden of parents in meeting the educational expenses
of their children. It provides scholarships to children of members of Janashree Bima Yojana and who
are studying in 9th to 12th standard(including ITI courses).A scholarship amount of Rs.600/- per half
year, per child, is paid for a maximum period of four years and for maximum two children of a
member. No premium is charged for this benefit. During the financial year 2011-2012 scholarships
were disbursed to 20,90,972 beneficiaries amounting to Rs. 176.24 crore.

4. INVESTMENTS: The LIC has been investing its fund in different sectors of economy.
The forms of Investments include investment in government securities, shares and debentures of
companies, Corporations etc. The total investment in these sectors during 2009-10 was Rs. 20,808.74
crore. The investment by way of central, state and government securities, loans, debentures and
equity investments to Rs. 6, 49, 808 crore. In addition, LIC huge amount of money goes to social
/community development in different parts of the country such as to Prime Ministers National Relief
Fund, Chief Ministers Relief Funds of various states as also Rajiv Gandhi Foundation to help relief
measures in case of calamities such as Earthquake, Tsunami etc.

5. LOANS TO SOCIAL & ECONOMIC PROGRAMMES: The LIC has been providing
loan funds to various social and economic development programmes in the country such as loan to
development of housing sector, power sector and other developmental projects.

6. INSURANCE BUSINESS IN VILLAGES: The LIC pays more attention to spread

business in rural and village areas. Sustained and conscious efforts are made to carry the message of
Life Insurance to the rural areas, especially the backward and remote areas. As a result, there has
been steady growth of new business from these areas. As per the definition of rural/social sector
approved by IRDA, the New Business from rural areas amounts to sum assured of Rs. 100052.00
crore under 11717769 policies representing 32.80 % and 19.66 % share of policies and Sum
Assured respectively completed during the financial year 2011-12.

7. MICROINSURANCE: This scheme is the protection of low-income people and may

cover various risks such as life, health, disability, property and crop insurance. Micro insurance is
recognized as a useful tool in economic development. Micro Insurance (MI) business vertical
continued its splendid march towards success in the financial year 2011-12. The channel has
sustained the trend of achieving phenomenal growth in the Micro Insurance initiative undertaken by
LIC. The initiatives undertaken by the department reiterates the LICs commitment of making the
dream of Financial Inclusion a reality. MI has achieved its business targets in the second
consecutive year by completing 38.27 lac policies with a growth rate of 29.67% and First Premium of
Rs. 46.42 crore. Micro Insurance business channel has crossed the historic 1crore policy mark in the
short span of five years of its existence. The MI business channel has provided valuable insurance
cover to 11.24 million policy holders who belong to the most vulnerable segment of the society as a
part of Financial Inclusion. The Micro Insurance channels contribution to the total new business
performance of the Corporation has increased from 7.97% in 2010-11 to 10.71% in 2011-12.The
Micro Insurance policies are sold through a specialized well placed distribution channel comprising
of NGOs, SHGs, MFIs, Corporate Agents, select conventional agents and Section25 companies.
Having 11546 MI agents on roll as at 31.03.2012 operating through 74832 Specified Persons,
declared 493 villages as Madhur Bimagram under which each such village gets an incentive in the
form of a community amenity financed by LIC.